The share of China's top ten steelmakers' crude steel output has increased to around 43% of the country's total steel production at the end of September, up 4 percentage points from the start of 2021, according to S&P Global Platts calculations based on transaction data announced over January through September.
The rise in the output share came after a major steelmaker acquired a steel company based in northeastern China's Liaoning province in late September.
China had set a target to increase the ratio of the top 10 steelmakers' crude steel output to China's total output to 60% by 2025. The latest acquisition brought the industry closer to this target, which is also aimed at giving the country higher negotiating power for raw material prices.
In the last few months, the industry has witnessed mergers and acquisitions transactions gaining pace among major steelmakers in the country.
China's industry-wide targets also fueled the consolidation, with some market sources expecting the consolidation to gather pace in the next three to four years. This is also being backed by China's leading steel mills that are increasingly looking to raise their market share and improve margins in an increasingly competitive market.